The overseas investment cap of alternative investment funds and venture capital funds has doubled to USD 1,500 million. Markets regulator Sebi on Friday brought in regulations to this effect.

This move would allow greater Indian participation in global companies and would speed up the growth of the Indian AIF industry overall.

Previously, a Sebi-registered alternative investment fund (AIF) or venture capital fund (VCF) could invest overseas, subject to an overall limit of, up to USD 750 million.

Doubling of the overseas investment allowance to USD 1.5 billion will enable Indian AIFs to invest overseas and generate strong returns for their investors.

Under the rules, AIFs and VCFs need to mandatorily disclose the utilisation of overseas investment limits within five working days of such usage on the market regulator's intermediary portal.

In case an AIF or venture capital fund (VCF) has not utilised the overseas limit granted them within 6 months from Sebi's approval, the same needs to be reported within two working days after the expiry of the validity period.

Further, if an AIF or VCF wishes to surrender the overseas limit at any point of time within the validity period, the same needs to be reported within two working days from the date of the decision to surrender the limit.